Personal observations on life

Errors in thinking – part 7

Authority bias

Most of us are in awe of authority, and we blindly obey them, often to disastrous results. The immediate rewards of obeying authority is being in their good books, and and that you stand more of a chance to land the next promotion. However, are all authorities good for you? Think back in your life and pick out instances when commands from authority have been good in taking decisions. Start with your own family. Did your father want you to pursue a career that you did not want to? Even if you did not want it, did you bow to his authority and pursue it any way?

Whenever you are about to make a major decision in life, take the advice from authorities as just a suggestion. The final decision should be yours, after carefully studying the issue, and weighing the pros and cons. Never take decisions just to please authorities if your gut feeling is against it.

Personal observations on life

Errors in thinking – Part 4

The Sunk-Cost Fallacy

When we have invested a lot of time, money and energy on something, that investment itself becomes a reason to carry on doing the activity, even if we are dealing with a lost cause. The more we invest, the greater the sunk costs are, and the greater the urge to continue becomes.

For example, some people continue in toxic relationships just because they have already invested a lot of time, money and energy.

This irrational behavior is driven by a need for consistency, because consistency signifies credibility. We find contradictions detestable and upsetting. If we cancel a project half way, there is a contradiction there: we are admitting that once we thought it was worth trying, and now we don’t. So we continue with the project even after realizing its meaninglessness.

Rational decision making requires us to forget about the costs incurred till date. No matter how much we have invested in something, it is only our assessment of the future that counts.